We are studying the feasibility of using modulated light sources to detect small absorbing objects embedded in a highly scattering medium.JAbsorbing spheres and circular disks of varying size will be submerged in a scattering media (skim milk) and studied in a transillumination geometry. Single linear raster scans in the plane of the sphere were taken and the data, DC intensity, phase, and modulation, were collected. The diffraction pattern of the spheres was appreciably different for the disks demonstrating the volume parameter associated with photon migration. With a 7.2 cm source to detector separation a fairly well localized photon bundle is present. The good localization and deep penetration are characteristics which form the basis for a 3-dimensional image reconstruction method. Since the photon density depends on the local absorption and scattering coefficients a reconstruction of the spectroscopic maps in three dimensions should be possible.